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Be Patriotic and Celebrate 4th of July by Supporting Military and Veteran-Related Charities

July 1, 2006

The conflicts in Afghanistan and Iraq have brought renewed attention to the heroic sacrifices made by the men and women serving in the armed forces and by the families who support them. Americans have many different ways of expressing their gratitude for the service provided by men and women in the military. This gratitude is especially evident around the 4th of July with the multitude of American flags, yellow ribbons, and shield decals you see everyday on cars, trees, and front doors.

Many Americans wish to show their support for those risking their lives to keep us safe by donating to charities that promise to provide assistance to military veterans and their families. Unfortunately, not all of these charities are spending your money well. In fact, many of the veterans' charities evaluated by Charity Navigator rank among the least efficient charities that we rate. An investigation conducted by Matthew Kauffman of the Hartford Courant found that "veterans' groups are more than twice as likely as other charities to use professional solicitors, which typically keep 70 to 90 cents of every dollar they raise. As a result, veterans' charities overall spend a vastly greater percentage of their budgets on fundraising, leaving less money available to help ex-GIs struggling with health care, housing or financial problems." Charity Navigator's own research backs this up. Our recently published top 10 list of Charities Overpaying their For-Profit Fundraisers includes a veterans' charity.

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Bogus Veterans' Charities

Of the 38 military and veteran-related charities evaluated by Charity Navigator a third have fundraising expenses over 20%, with 3 charities spending more than 50% on fundraising and 2 charities spending more than 89% of your donations on fundraising!

Any charity that spends money this inefficiently is doing a disservice to both its donors and its intended beneficiaries. The fact that these charities are using the good name of America 's heroes to raise donations and then end up spending most of these donations on fundraising or administration is especially sad. Donors become victims when their donations are not used to benefit their service men and women as they had thought. Our military, their families and veterans are doubly hurt both because they don't receive the assistance they need, and because people who give to a poorly-run, inefficient charity once, may be hesitant to donate to a well-run charity in the future.

In order to stop the inefficient, poorly-run military and veterans' charities from absorbing donations that would otherwise go to more efficient charities donors need to make sure they know how a charity spends its money before they donate. More importantly veterans must speak out against those raising funds in their name and then spending these funds inefficiently. The good guys need speak up and let donors know that these groups do not represent them.

If donors and well-run charities unite, hopefully someday there will be no donations left for unscrupulous, poorly-run, inefficient charities using the good name of America's finest and bravest. Until then, donors can use these tips and lists of charities below to find a charity that will make sure that their donation reaches these brave men and women.

  • Never give over the phone. Of the charities with high fundraising expenses, much of their money is spent on for-profit telemarketing companies. These companies often charge the charity 25 to 95 cents of each dollar raised. That's more of your money not going to those protecting you.
  • Look at the charity's finances for yourself. Charity Navigator has detailed analysis of the financial records of many military and veterans' groups on our site. The tables below show the 5 best and 5 worst that we currently evaluate. If you are interested in a group not found on our site, then ask the organization to provide you with a copy of its annual report or a brochure describing its mission and accomplishments. Also ask for a copy of its current financial statements or request a copy of the organization's IRS form 990. Federal law requires nonprofit organizations to provide their last 3 IRS form 990s (tax returns) within 30 days of your request.

The Best and Worst Military and Veteran-Related Charities

The Five Best Overall Rating Overall Score
Fisher House Foundation
A home away from home
69.40
Disabled American Veterans Charitable Service Trust
Building better lives for America's disabled veterans
69.27
Marine Corps-Law Enforcement Foundation
Encouraging spiritual, moral, intellectual and physical development through education
67.41
Coast Guard Foundation
Honor...Respect...Devotion to duty
65.85
Marine Corps Scholarship Foundation
Scholarships for children of the Marines
63.68
     
The Five Worst Overall Rating Overall Score
Disabled Veterans Association
Providing information and resources for disabled veterans
0 Stars 5.32
National Veterans Services Fund, Inc.
Providing critical care to veterans and their families
0 Stars 10.00
American Ex-Prisoners of War Service Foundation
The official fundraising arm of the American Ex-Prisoners of War
0 Stars 15.00
New England Shelter for Homeless Veterans
Extending a helping hand to homeless men and women veterans
25.16
U.S. Navy Memorial Foundation
Honoring, preserving and celebrating America's naval heritage
26.05

See the full list of military and veteran-related charities evaluated by Charity Navigator.

 
 

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